What A Surprise! It Turns Out They Lied About The Deficit Last Year

Some of us have been there. You get that news from the doctor that you, or a loved one, has just been diagnosed with a serious disease, and it hits you like a ton of bricks.

Several years ago my father was diagnosed with a brain tumor known as a Glioblastoma (GBM). A GBM diagnosis is essentially a death sentence– it’s one of the most aggressive tumors in existence, and it grows in the part of the body that modern medicine understands the least.

I clearly remember the neurosurgeon telling us, “There have been some miraculous advances in medicine over the last 20-years related to the treatment of cancerous tumors. Unfortunately, this tumor is not one of them.”

It was a tough pill for everyone to swallow… especially my father.

Our natural defense mechanism as human beings is to deny reality. These sorts of things happen to other people, not to us.

It’s this same defense mechanism that leads people to ignore the obvious fiscal realities of their home country despite overwhelming objective evidence.

After all, debt-fueled collapse happens to other countries. Not to us.

We go our entire lives being told that our country is different. We’re special.

This is the government’s best attempt at an honest accounting of its books. And even though they use a different accounting system that gives them special advantages, the picture is still remarkably bleak.

We all know that the US government has racked up a substantial debt; as of this morning, total outstanding public debt is $17,546,814,482,078.90. ($17.5 trillion)

But it’s not all about the debt. Debt is not necessarily evil… and it’s important to look at the situation qualitatively in addition to quantitatively.

Let’s drop a few zeros and consider this in terms of personal finance.

Assume you had $1.75 million in total debt. That sounds like a lot to most people.

But if you had $3 million in liquid assets to offset the debt, plus $500,000 in annual income to pay interest, living expenses, and just about any contingency that could come your way, you’d be in great shape.

It would be even better if that $1.75 million in debt financed a lucrative real estate investment which was generating a 25% cash-on-cash return for you.

But that’s not the case for the US government.

Despite the Obama administration touting a budget deficit of “only” $680 billion in 2013, the GAO’s more accurate accounting shows a total government cost of $3.8 trillion on total revenue of $2.8 trillion.

In other words– the administration wasn’t exactly honest with the American people– the deficit was more like $1 trillion, not $680 billion. But it gets worse.

The GAO added up ALL the US government’s assets in 2013. Aircraft carriers. The highway system. Land. Cash and financial assets. The total is $2.97 trillion.

The liabilities, on the other hand, total $19.88 trillion. This includes the official public debt, plus all sorts of IOUs and loan guarantees.

This means the net EQUITY of the US government is minus $16.9 trillion.

Moreover, the US government’s cash position is a mere $206 billion… roughly 1.1% of its public debt. This isn’t enough to cover net interest payments for the next year.

Unlike a savvy investor who borrows cheap money to purchase productive assets, the US government borrows money to pay interest.

Quantitatively AND qualitatively, the data point to an inevitable conclusion: despite all the propaganda, this is NOT a risk free environment.

And understanding these trends and consequences is absolutely critical to your long-term financial survival.

I ignore any deficit projection they publish anyway. I look at the GAAP deficit, which has been running at 5-6 trillion a year at least, and will continue to grow in the coming years. That's the one that really matters anyway. Try as they might to pretend it doesn't exist, it most certainly does.

As mentioned above, look at the GAAP deficit. Its WAY more than $1 trillion! The gov't issues promises like there is no tomorrow (hmmm...) and between Social Security and Medicare and pension promises this machine grinds to a halt long before 2023. IMHO.

Ya, we have passed the 'event horizon' of debt creation. It took us over 200 years to create the first 8 trillion of debt, and less than a decade to crest the next 8T. It really started to accelerate once we left the gold standard. And it will probably double again in the next decade. Hedge accordingly.

Obama also maintains an underweighting of "evil axis", Russia, and any other "enemy of the state"...plus an extreme sell call on all PM's in conjunction with his employer, JPM, and Chicago partner, COMEX.

Could someone tell my why the colors used to show the GDP% of the country debt has nothing to do with something that visually demonstrate the "seriousnes" of it?. I mean US 103% of GPD - Blue, UAE 16% - Red?. WTF?

The American government has been spending trillions of dollars on programs it had no Constitutional authority to create, and such unconstitutional expenditures exceed the amount of the federal debt. Therefore,

The federal debt is unconstitutional.

Not only are most government programs themselves unconstitutional, but the debt used to pay for these unconstitutional programs, which were created by previous taxpayers, is paid for by future taxpayers. Therefore,

The federal debt is Taxation without Representation.

Taxation without representation is also unconstitutional. In fact, it is the reason America seceded from the British empire.

Given that the US Constitution is pretty simple, then anyone who loaned money to the US government should have known that they were loaning money to a fraudulent and illegitimate enterprise and thus should not expect repayment.

Of course, there would be a huge consequence – no one would be willing to loan money to the US government again until it started obeying the Constitution, which would be ...

The Constitution has been acknowledged ONLY by its violation for some time now.

No worry though. It's easy to pay off TRILLIONS in debt if you don't given a damn about the purchasing power of your money.

I've got a Zimbabwe banknote that's worth $Zim 100 TRILLION. That's what happens when you can print away (at least until they won't sell you any more paper - a non-issue for the US where 'money' is created with keystorkes on a computer).

Only problem is that when you reach this point, your savings are worthless and a loaf of bread costs $1 Trillion - or at least a few hundred billion.

There's a reason our Founding Fathers gave government the power ONLY to COIN Gold and Silver - specifically REFUSING government the power to print paper money. But THAT concept was thrown out the window some time ago....... Remember when LBJ said that removing silver from coins meant NOTHING - that there would be NO DIFFERENCE in the value of your money? Candy bars that cost 10 cents then now cost $1.50........ project that out into the future on an exponential curve.

What no one deny is that US debt and unfunded liabilities per taxpayer are $1,250,000 and rising at $70,000 per year per taxpayer.

Since when has Obama ever told the truth? He has lied about everything. He handed US sovereignty on a silver platter to a foreign power in March 2009 when he asked the NSA to hand all its raw data including that on Americans to Israel without any legal restrictions. Then he almost lied the US to a major war with Syria:

Pulitzer Prize-winning investigative journalist Seymour Hersh has published an article demonstrating that the US government and President Barack Obama knowingly lied when they claimed that the Syrian government had carried out a sarin gas attack on insurgent-held areas last August.

Not just Obama. All US Presidents since Carter - or maybe even earlier - have been figureheads serving TPTB. The Republic has been dead for some time and the Empire is collapsing at a fast-forward rate. They will try and hold it together at the end of a gun but when you can't afford the bread and circuses any more things get ugly.

Huh, and I think you're a Red Team voting dumbasses probably living off of some Big-Gov scam you can't comprehend is socialism (or you do comprehend it's socialism but are a normal duplicitous "Conservative" asshole).

One problem with this view, is that all of the regulation that has evolved to try to ensure the safety of pressurized light water reactors, has had the perverse effect of discouraging safer designs from being developed. As we saw with TMI and Fukushima, the fuel in a water-cooled reactor must be immersed at all times, but the water will only stay liquid if kept under many atmospheres of pressure.

"Assume you had 3 mil in liquid assets and 500k income stream" What country is he talking about? Here in the US, which is whose deficit he is referencing, most families make about 40k, with people making about 200k singled out for additional tax due to excessive wealth. This article is beyond reality.

Making money on my short EUR/USD contracts; and the one ceremonial GBP/USD short; and I put on some short June Cattle contracts today @136.75. Hoping "the fever has broken in that hugely overbought market>

And they're also bragging that they stole a record amount of taxes from our hides last year also. But whether that's true or not is unimportant since tax revenue goes into the pockets of our foreign off-shore bankster overlords who own the Federal Reserve and the IRS and is not used to pay down any fucking debt.

If that was a private business with that much movement in the numbers...I think you would be in trouble....680 to 1 trillion is quite a spread...I woould want to know the true numbers to make my decisions...

Congress long ago, by accepting Keynesian economics, decided to go along with large deficits by sowing the seeds of Fabian socialism in Washington and by the 16th amendment that gave the federal government unrestricted access to the wealth of Americans:

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. -- February 3, 1913

So exactly what is Keynesian economics?

John Stormer (None Dare Call It Treason) says that it is the means whereby “collectivists have grabbed for control of the federal government” and skillfully used the ’economic’ theories of John Maynard Keynes, a British Fabian economist, as “the vehicle for buying the votes and support of the masses with their own money.”

In the typical Fabian fashion of “never calling socialism by its true label” as advocated by George Bernard Shaw in his “Intelligent Woman’s Guide to Socialism and Capitalism,” six-time Socialist candidate for US president, Norman Thomas, nonetheless went on to say in A Socialist’s Faith:

“:…Keynes has had a great influence and his work is especially important to any re-appraisal of socialist theory. He represents a decisive break with laissez-faire capitalism.”

And now that those who get the grants and work with the government and the Fed are all Keynesians, the results are in: the necessary economic collapse of America as a prelude to the SDR and a one-world socialistic state.

One-time Communist John Strachey, a member of the British Fabian Society and War Minister in the Labor Government of Great Britain in 1950, explains:

“The positive part of Keynes’ work was a demand that capitalism should now be regulated and controlled by a central authority. The principal instruments of its policy should be variations in the rate of interest, budgetary deficits and surpluses, public works and a redistribution of personal incomes in equalitarian direction.”

Although Keynes wrote to Shaw before publishing his major work, The General Theory of Employment, Interest, and Money, that “when my new theory has been duly assimilatedand mixed with politics and feelings and passions (blended with media and press propaganda of hate and fear), I can’t predict what the upshot will be in its effect on actions and affairs,” we now know, don’t we?...

...a new age of collectivism via debt slavery and the wipeout of America's most solid citizens -- the thrifty and the hard-working middle-class.

Well, it's not as if Keynes persuaded any of these people that central planning and big government were good ideas. Those were their views since before Karl Marx. So as far as they're concerned, Keynes was endorsing _their_ views, not the other way round.

Lever up ya bunch of pussies. If 50 to one works for best and brightest at the big banks its gotta work for Bamy & Co. More social spending, give everyone in the US a million bucks to spend - what could possibly go wrong. Just ask Bill Black or Cullen Roche or Krugman - or Bamy hisself MMT to the Moon baby.

Because what the debt is going to pay mostly is NOT long-lived public assets or sustainable institutions. It's going to pay for people's day-to-day needs through government transfer payments. It's also going to pay college presidents and university football coaches, doctors, bankers, corporate CEOs, defense contractors, and all the other people who live very comfortable government-subsidized lifestyles. It's going into the GDP measurement one way or the other, and the funny thing is, the more they pump in the less effective it gets over time until, as we see now, it will turn and bite like a viper.

so we have the federal reserve as the central bank
of/for the usa (and given the feds make up and history)
and the phrase long term financial survival is employed
as a potential outcome or goal?
i sense a fundamental disconnect in the logic or
use of the language.
money debt is issued out of thin air based on nothing
more than the remembrance of a fart, if that,
and that is the strong argument for monetary
and fiscal long term survival.
anyway ....
sovereigns only employ accounting to intimidate
their competition, other than that they never
take it seriously.

When i was younger, I could never figure out why Jews didn't flee Nazi Germany before it was too late. Now, approaching older age, I understand why. It is not just leaving your job, your assets, etc., its going contrary to a normalcy bias. The jig is up in the USSA - time to get out. I have lived all over the world and one thing is clear - Amreikans to a large degree and ignorant and stoopid. The gov't is corrupt.... on a global basis. it is not to hard to make a case that USSA is in fact The Great Satan...

The average Jew in Germany in the 30's considered himself German and somehow just thought the Government would consider them as such and at some point stop the discrimination. Wishful thinking of course, in hindsite. The Jew, Zionists, that caused the problems were the first ones to follow their wealth out of the country before it was too late. For some it was too late as dual citizenship was not available to them at that time and they had to rely on their Deutches Reich passposts.

Moreover, the US government’s cash position is a mere $206 billion… roughly 1.1% of its public debt. This isn’t enough to cover net interest payments for the next year.

And that is why interest rates on Treasuries will be held down at all costs no matter what bullshit Yellen spews.

The government goes bankrupt so does their mercenary global police force's ability to enforce their control of the game.

Stop paying your taxes bitchez. Time to get the American Revolution 2.0 started. It starts when they are forced to admit bankruptcy not before. Can't allow them to dig in the defensive structures any deeper. Consent of the governed through nonparticipation for starters to exert hard power. Stop being a bunch of effeminate social eugenic programed enablers.

It should have happened in 2001 but they delayed it and started putting in the self preservation system and should have happened again in 2008 but they managed to stave it off because the protection system wasn't fully operational can't allow them any more time or it is only going to be that much harder to dislodged these parasitic pricks and take back control of our country and resources.

There is an illusion at work. In banking and government and boardrooms, the closer you are to the money pump the richer you feel; the heat and thrum of the equipment generates confidence. In less moral enclaves there exists a gleeful joy at misallocating actual pallets of cash on transport aircraft (this would be the defense establishments). They look at it like a golden goose that gives and gives, magic, could go on "forever". Just show things blow up from time to time, oh, and kill people.

At the bottom of this fetid pyramid are protohumans in their individual gigs with a heady little faucets of lucre. As long as they suck, and something comes out, they're good. Below them, are those that scream and cry BEFORE they lose their teat, these are politicians. Below them are the demons of planning, NGO's, killers, those unhinged souls dedicated to poisoning you with flouride and such, preferably, slowly, and your kids too.

And that balance sheet is why they will bitcoin the shit of gold to balance their debt and currency. There is no other way to do it except printing the money, and they don't want to do that. They need an asset. And this is always gold's role.

What the current regime and the one before it is doing is very similar to a household that cash advances their credit cards to keep their other credit cards current. And the GAO numbers probably are just as far from the truth as the admin's numbers, so add a zero and round up.

Under the United Nations Biodiversity Treaty, a precious resource—owned by American citizens for over 200 years—has been turned over to the UN's bureaucrats for control. Yes, you and I will continue to pay taxes for the maintenance and upkeep of the Great Smoky Mountains National Park. But we no longer own it. Now, the UN has ultimate jurisdiction. This alone is startling evidence that the once independent nation-state known as the United States of America is going out with a whimper and not a bang. Our sovereignty is coming to an end.

Exclude public lands from the assets column. That includes any minerals, water, natural gas, or oil that may be underneath. If the U.N. wants to sell water from the Great Lakes to China. Done deal! No problem!

Making the ugly math simple to understand is no easy task, but lets have a go at it. Not lying about the numbers to arrive at a clear picture of reality is important. To make things easy lets us do a bit of rounding off and work with easier to manage numbers.

We will start by placing the population of the United States at 333 million people, that is reasonably close. This means every man women and child, what is important it that this includes infants, children, teenagers, the non working-both self sufficient and those on government assistance, the retired, and the elderly in nursing homes.

How marvelously simple and convenient that this number goes into 1 Billion dollars 3 times. This means that every 1 billion dollars spent by our government represents $3 for every person in America! The article below looks deeper into the ugly math.